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V1445-15 8 May 2015 · SG de Impuestos sobre las Personas Jurídicas Criterion in force
IRPF · rendimientos de actividades económicas

Professional partners' payments for non-administrative services are deemed economic activity profits under certain conditions

A society seeks clarification on whether payments to its professional partners (notary and lawyer) for professional services are income from work or from economic activity. The DGT determines that, upon meeting LIRPF requirements, such payments are classified as profits from economic activities.

The question raised

1) Whether the remuneration received by the partner surveyor for their work is considered personal employment income for the purposes of Personal Income Tax and subject to the general withholding regime, or whether it should be invoiced as a self-employed worker and the remuneration considered as income from professional activity.

The DGT's ruling

Remuneration for director functions constitutes income from employment. However, payments for professional services other than administration, when the partner is included in the special Social Security regime for self-employed workers or mutual insurance societies, are considered income from economic activities. These transactions between related parties must be valued at their normal market value.

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